Cash flows numbers are same numbers of rate of return .

Domestic Firms

a- 12

b-10

c-9

d-8

Multinational Firms

A-14

B-12

C-10

D-8

F-6

For the following two firms, compute the value of the domestic firm, the value of the multinational firm, the net present value, the profitability index, V', V", and V". Domestic Firms Project Rate of Return 12% 10% 9% 8% Investment $100 $100 $100 $100 D Multinational Firms Rate of Project B Investment $100 $100 $100 $100 $100 Return 14% 12% 10% 8% 6% D